Pattern library
Dropbox's referral program: the two-sided reward, and how to borrow it
Dropbox paid for referrals in the product itself: both the person who invited and the person who joined got extra free storage. The reward cost little to give, was exactly what users wanted more of, and made inviting a friend feel like a favour.
Why it works
- Both sides are rewarded, so the invitation is a gift, not a sales pitch.
- The reward is more of the product, which users already value and which costs little to provide.
- The invitation sits where people are already sharing, not on a separate referral page.
- A cap on the reward, so the program stays cheap and cannot be farmed.
When it holds
- The product gets better, or more needed, when friends or colleagues use it too.
- There is something in the product that is cheap to give and valued by users.
Where it breaks
- The reward is cash or a discount, which attracts people who want the reward, not the product.
- Nobody shares the product with others in normal use, so there is no natural moment to invite.
- The free extra is something users do not run out of, so it is not worth asking a friend for.
Where else it works
- PayPal
- Paid both the new user and the person who invited them a cash bonus, years before Dropbox.
- Uber and Airbnb
- Gave both sides credit toward a ride or a stay.
- Cloud and SaaS products
- Offer extra usage or storage to both people when a referral signs up.
Where you could try it
- A collaboration or B2B SaaS tool
- A consumer app with a usage limit
- A marketplace that needs both sides